Commercial Lines Market Remains Hard, According to IVANS
June 07, 2018
IVANS has announced the IVANS Index: Premium Renewal Rate Index May results. The outcomes showed that the majority of standard commercial lines products are trending positively, except commercial auto and umbrella, which experienced a slight downward tick while remaining in positive territory.
Premium renewal rate change by line of business for May 2018 highlights include the following.
- Commercial auto: 4.04 percent, down from 4.54 percent at the end of April
- Businessowners policy: 4.02 percent, up from 3.86 percent the month prior
- General liability: 2.37 percent, up from 2.16 percent at the end of last month
- Commercial property: 3.20 percent, up from 2.98 percent at the end of April
- Umbrella: 1.54 percent, down from 2.31 percent the month prior
- Workers compensation: -2.71 percent, up from -2.93 percent at the end of April
"The latest IVANS Index figures show that premium rate change across the industry remains steadily positive with average variance from month to month across nearly all lines, except for umbrella, which experienced the most significant trend change,' said Brian Wood, vice president of IVANS Markets. "This month's IVANS Index demonstrates that the commercial lines market remains hard and further provides guidance on the most profitable lines of business for both insurers and agents."
IVANS Index, released monthly, is a data-driven report on conditions and trends for premium rate renewal change of the most-placed commercial lines of business in the insurance industry. Based on analysis of more than 120 million data transactions, the IVANS Index premium renewal rate change measures the premium difference year over year for a single consistent policy. It includes more than 30,000 agencies and 380 insurers and managing general agents, and it reflects premium rate change trends experienced by all agencies and insurers across the US insurance market. IVANS Index is available to agencies and insurers as part of IVANS's "Market Insights."
To derive the change in cost, IVANS uses policies that have the same insured, insurer, product type, policy number, expiration date, effective date, and producing agency. For example, if an insured paid $1,000 for a policy last year and $1,023 this year, IVANS Index would state that there is a premium renewal rate change of 2.3 percent. IVANS Index does not use exposure base change or claims experience. Policies with anomalous exposure changes or claims experience are removed.
June 07, 2018